Canadian real estate prices are just off of all-time highs. Canadian Real Estate Association (CREA) numbers show prices fell on a monthly basis in August, but were still positive from last year. The most interesting takeaway is the price growth deceleration across Canada, as interest rates rise. The rate of growth rapidly dropped, and bounced higher over the past few months. Denise can help you sell that home while market values continue to climb.
Why You Care About National Trends
Usually an agent that can’t tell their asshole from a Vancouver tear down will say that real estate is local. That’s true… to an extent, but you can’t tell what’s local, if you don’t know what is a national influence. If prices in your neighborhood rise 10% in one year, it might be there’s not enough supply. If prices rise 10% across the country, it might be because there’s a bigger issue with the credit supply. Interest rates, inflation, wholesale banking costs, and credit cycles are all contributors. Even here in Prince George home prices are on the rise.
The price increase is substantial, but marks a trend of lower growth. In August 2017, we saw prices rise 10.55% on an annual basis. The year before that, we saw prices up 14.15% on an annual basis. The 2.54% in August 2018 is a large increase, but looks a little slow in contrast. The good news is it’s just off multi-year lows for growth reached in May and June. Although, coming off of large growth in previous years, there’s a good chance this is just a dead cat bounce.
Canada’s Most Expensive Markets
Canada’s most expensive markets were Vancouver, Oakville, and Fraser Valley. The price of a typical home in Vancouver reached $1,083,400 in August, up 4.12% from the same month last year. In Oakville, an affluent suburb of Toronto, it reached $949,800, up 1.24% from last year. In Fraser Valley, a market so close to Vancouver agents overlap, it reached $871,600, up 10.71 from last year. Toronto is actually fourth, but didn’t top or bottom the list in anyway.
Canadian Real Estate Markets With The Biggest Gains Are In BC
The largest price increases were observed in Fraser Valley, Victoria, and Hamilton. As mentioned previously, Fraser Valley saw the price of a typical home reach $871,600, up 10.71% from last year. Victoria hit $692,700, up 8.47% from last year. The price of a typical home in Hamilton hit $578,000, up 7.22% from the previous years. These markets surround either Toronto or Vancouver. Big city expectations, for the suburbs. Home prices in Prince George are also on the rise and Denise can help you get top dollar.
The markets with the biggest drops are Regina, Barrie, and Saskatoon. The price of a typical home in Regina fell to $277,600 in August, down 4.77% from the same month last year. Barrie saw prices fall to $469,900, down 2.73% from last year. Saskatoon reached $293,900, down 2.29%. Still unclear if any of our readers can located these cities on a map.
Despite being off of all-time highs, real estate prices across the country are still very high. Not just in Toronto or Vancouver, but suburban regions like Fraser Valley and Oakville. Despite bank economists discussing the end of the national correction, we actually haven’t seen one. In order for their to be a national correction, prices kind of like… need to fall.
